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Factors Setting the Tone for Brinker's (EAT) Q4 Earnings
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Brinker International, Inc. (EAT - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Aug 16. In the last reported quarter, the company delivered an earnings surprise of 5.1%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fiscal fourth-quarter earnings per share (EPS) is pegged at $1.30, indicating an improvement of 13% from $1.15 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,079 million, suggesting a 5.7% increase from the year-ago quarter’s figure.
Brinker International, Inc. Price and EPS Surprise
Let's look at how things have shaped up in the quarter.
Factors at Play
Brinker International's fiscal fourth-quarter top line is expected to increase year over year, courtesy of solid Chili's performance, development efforts and marketing initiatives. This and incremental improvements in traffic, increased menu pricing and effective menu strategy are likely to have aided the company’s performance in the to-be-reported quarter.
For the said quarter, our model predicts revenues from Chili's and Maggiano's to increase 5.8% and 1.1% year over year to $956.2 million and $118.6 million, respectively.
Inflationary pressures and increased expenses in broad-based advertising and incremental repair and maintenance investments are likely to have hurt margins in the fiscal fourth quarter.
Our model predicts company restaurant expenses to be $910.4 million, up 2.7% year over year. Per the model, general and administrative expenses are expected to increase 9.9% year over year to $38.8 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Brinker this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.
Earnings ESP: Brinker has an Earnings ESP of -3.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Urban Outfitters, Inc. (URBN - Free Report) currently has an Earnings ESP of +2.27% and carries a Zacks Rank #2.
URBN’s earnings for the to-be-reported quarter are expected to increase 37.5% year over year. The company reported better-than-expected earnings in two of the trailing four quarters and missed the mark twice, the average surprise being 12.2%.
The TJX Companies, Inc. (TJX - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2.
TJX’s earnings for the to-be-reported quarter are expected to increase 10.1% year over year. The company reported better-than-expected earnings in all the trailing four quarters, the average surprise being 4.4%.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank of #3.
COST’s earnings for the to-be-reported quarter are expected to increase 12.4% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed the mark once, the average surprise being 1.8%.
Image: Bigstock
Factors Setting the Tone for Brinker's (EAT) Q4 Earnings
Brinker International, Inc. (EAT - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Aug 16. In the last reported quarter, the company delivered an earnings surprise of 5.1%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fiscal fourth-quarter earnings per share (EPS) is pegged at $1.30, indicating an improvement of 13% from $1.15 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,079 million, suggesting a 5.7% increase from the year-ago quarter’s figure.
Brinker International, Inc. Price and EPS Surprise
Brinker International, Inc. price-eps-surprise | Brinker International, Inc. Quote
Let's look at how things have shaped up in the quarter.
Factors at Play
Brinker International's fiscal fourth-quarter top line is expected to increase year over year, courtesy of solid Chili's performance, development efforts and marketing initiatives. This and incremental improvements in traffic, increased menu pricing and effective menu strategy are likely to have aided the company’s performance in the to-be-reported quarter.
For the said quarter, our model predicts revenues from Chili's and Maggiano's to increase 5.8% and 1.1% year over year to $956.2 million and $118.6 million, respectively.
Inflationary pressures and increased expenses in broad-based advertising and incremental repair and maintenance investments are likely to have hurt margins in the fiscal fourth quarter.
Our model predicts company restaurant expenses to be $910.4 million, up 2.7% year over year. Per the model, general and administrative expenses are expected to increase 9.9% year over year to $38.8 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Brinker this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.
Earnings ESP: Brinker has an Earnings ESP of -3.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Urban Outfitters, Inc. (URBN - Free Report) currently has an Earnings ESP of +2.27% and carries a Zacks Rank #2.
URBN’s earnings for the to-be-reported quarter are expected to increase 37.5% year over year. The company reported better-than-expected earnings in two of the trailing four quarters and missed the mark twice, the average surprise being 12.2%.
The TJX Companies, Inc. (TJX - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2.
TJX’s earnings for the to-be-reported quarter are expected to increase 10.1% year over year. The company reported better-than-expected earnings in all the trailing four quarters, the average surprise being 4.4%.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank of #3.
COST’s earnings for the to-be-reported quarter are expected to increase 12.4% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed the mark once, the average surprise being 1.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.